Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Canadian Stocks Gain as Banks, Raw-Material Producers Advance

Updated on

June 27 (Bloomberg) -- Canadian stocks rose after three days of declines, as bank shares gained after global regulators issued new capital rules and raw-material producers climbed.

Toronto-Dominion Bank and Bank of Nova Scotia jumped 1.2 percent and 1.5 percent, respectively, as financial companies advanced. Potash Corp. of Saskatchewan Inc. increased 3.1 percent as Stifel Nicolaus & Co. said fertilizer stocks may continue to gain.

The Standard & Poor’s/TSX Composite Index added 57.60 points, or 0.5 percent, to 12,966.49 at 4 p.m. in Toronto.

“Now we have clarity on the amount of capital needed for those financial institutions,” said Bob Decker, a money manager at Aurion Capital Management in Toronto, which oversees C$5.5 billion ($5.6 billion). “Just to know what the number is has created some confidence. There’s basically a wait-and-see attitude to find what the solution is going to be on these Grecian debts.”

The S&P/TSX broke a three-week losing streak last week as investors speculated Greece will be able to enact austerity measures and avoid default. Greek lawmakers are starting a three-day debate to approve an austerity package needed for the release of the next phase of an international bailout.

An index of financial stocks in the S&P/TSX rose 0.7 percent. Banks deemed too big to fail must hold as much as 2.5 percentage points in additional capital as part of efforts to prevent another financial crisis, the Basel Committee on Banking Supervision said in a statement June 25. As many as 30 banks may face some level of surcharges, according to a person familiar with the discussions.

’Fairly Volatile Week’

Toronto-Dominion Bank, the country’s second-largest lender by assets, gained 1.2 percent to C$79.60. Bank of Nova Scotia climbed 1.5 percent to C$57.89.

“This week is going to be a fairly volatile week -- our eyes continue to be on the European issues that are going on with Greece,” said Youssef Zohny, a money manager at Van Arbor Asset Management Ltd. in Vancouver, which oversees about C$50 million ($51 million). The new capital rules “are seen more positive for Canadian-U.S. banks, so that’s giving a little bit of strength to the Canadian financial sector.”

Potash Corp. increased 3.1 percent to C$53.52 as Horst Hueniken at Stifel Nicolaus said fertilizer stocks may continue to gain. Potash, the largest fertilizer producer by market value, has advanced 4 percent this year. Agrium Inc., Canada’s second-largest fertilizer company, advanced 2.5 percent to C$84.30.

Food Needs

Investment in agriculture must rise by $90 billion a year to meet the world’s growing food needs, according to a study sponsored by businesses including Monsanto Co., DuPont Co., Archer Daniels Midland Co. and Deere & Co.

The “investment gap” requires more private-sector involvement in agricultural and rural development, according to the report issued today by the Global Harvest Initiative, a collaboration between companies and nonprofits such as the World Wildlife Fund.

A group of energy stocks in the S&P/TSX gained 0.1 percent after losing as much as 0.6 percent earlier. Suncor Energy Inc. dropped 0.1 percent as oil sank. Talisman Energy Inc. fell 0.5 percent to C$18.46.

The IEA said June 23 its member states including the U.S. and Germany would release oil stockpiles for the third time in the agency’s history. The agency will act again if needed, Executive Director Nobuo Tanaka said June 25.

Yellow Media Inc. plunged 18 percent for the biggest decline of the S&P/TSX, to C$2.44. The directory publisher was cut to “underperform” from “neutral” at Credit Suisse Group AG, which cited a potential dividend cut and an accelerating decline in print business.

To contact the reporters on this story: Inyoung Hwang in New York at ihwang7@bloomberg.net; Victoria Stilwell in New York at vstilwell@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.